NEW DELHI, Sept 28 (Reuters) - Dow
Chemicals Co. (NYSE:DOW - news), America's second largest chemicals firm, will invest up
to one billion dollars in India over the next three years to set up a naphtha cracker,
Press Trust of India (PTI) said on Thursday.

"We are in negotiations with several Indian companies to set up a naphtha
cracking plant jointly. We have planned to bring in up to$1 billion to realize our aim,''
PTI quoted Graham Fox, Dow's regional general manager for Middle East and India, saying
Dow would hold a majority stake in the new company which would be located in the western
part of the country, PTI said.

The chemical firm will soon approach India's
Foreign Investment Promotion Board (FIPB) to seek approval for its investment, the news
agency said. The annual capacity of the cracking plant would be some one million tonnes.